SIDOTI WINTER 2021
INVESTOR CONFERENCE
JANUARY 14, 2021
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MANAGEMENT IN ATTENDANCE TODAY
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COMPANY AT A GLANCE
CVG - A DIVERSIFIED INDUSTRIAL COMPANY
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INVESTMENT HIGHLIGHTS
LEADING SUPPLIER OF ELECTRICAL WIRE HARNESSES, SEATING SYSTEMS, ENGINEERED PLASTIC
COMPONENTS, AND ELECTROMECHANICAL ASSEMBLIES
Optimizing support structure, making core business leaner,
and driving new business wins where innovation and engineering expertise can add value
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LOCATIONS
GLOBAL FOOTPRINT
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Q3 2020 WAS A GOOD QUARTER
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Q3 2020
SALES MIX IS TURNING THE CORNER
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Q3 2020
TRUCK MARKETS IMPROVED SUBSTANTIALLY
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STRATEGIC OBJECTIVES-REVENUE GROWTH
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Q3 2020
STRATEGICALLY ADDED CAPACITY AND EXPANDED PRODUCT LINE IN THE WAREHOUSE AUTOMATION BUSINESS
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Q3 2020
WAREHOUSE AUTOMATION SUBASSEMBLIES
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Q3 2020
FOCUS ON SECURING PLATFORM POSITIONS
ON ELECTRIC VEHICLES
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UNIQUE ELECTRIC VEHICLE
VALUE PROPOSITION
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ENTERING NEW END MARKETS -
INJECTION MOLDING AND WIRE HARNESSES
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Q3 2020 KEY TAKEAWAYS
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Q3 2020
FINANCIAL UPDATE
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Q3 2020
CVG CONSOLIDATED FINANCIALS
$ MILLIONS, EXCEPT PER SHARE DATA
Q3 2020 | Q2 2020 | Q3 2019 | |
Revenue | 187.7 | 126.9 | 225.4 |
Gross Profit | 24.2 | 6.5 | 29.4 |
Gross Margin | 12.9% | 5.1% | 13.1% |
SGA | 14.4 | 16.0 | 17.5 |
Amortization | 0.9 | 0.9 | 0.4 |
Impairment | - | 0.2 | - |
Operating (Loss)/Income | 8.9 | (10.5) | 11.5 |
Operating Margin | 4.7% | (8.3)% | 5.1% |
Diluted Earnings Per Share | $0.13 | ($0.40) | $0.23 |
Adjusted Operating (Loss)/Income* | $12.0 | (3.6) | 12.4 |
Adjusted Operating Margin* | 6.4% | (2.8)% | 5.5% |
Adjusted EBITDA* | $16.4 | 1.2 | 16.3 |
Adjusted EBITDA Margin* | 8.8% | 1.0% | 7.3% |
Q3 2020 NOTES
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Q3 2020
ELECTRICAL SYSTEMS SEGMENT RESULTS
$ MILLIONS
Q3 2020 | Q2 2020 | Q3 2019 | |
Revenue | 121.1 | 74.2 | 131.4 |
Gross Profit | 16.1 | 1.1 | 17.1 |
Gross Margin | 13.3% | 1.5% | 13.0% |
SGA | 3.2 | 6.6 | 4.0 |
Amortization | 0.7 | 0.7 | 0.3 |
Operating (Loss)/Income | 12.2 | (6.2) | 12.8 |
Operating Margin | 10.1% | (8.3)% | 9.7% |
Adjusted Operating (Loss)/Income* | 13.4 | (0.7) | 12.8 |
Adjusted Operating Margin* | 11.1% | (1.0)% | 9.7% |
Q3 2020 NOTES
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Q3 2020
GLOBAL SEATING SEGMENT RESULTS
$ MILLIONS
Q3 2020 | Q2 2020 | Q3 2019 | |
Revenue | 68.9 | 53.9 | 95.7 |
Gross Profit | 8.4 | 5.3 | 12.3 |
Gross Margin | 12.2% | 9.9% | 12.9% |
SGA | 3.5 | 3.7 | 5.0 |
Amortization | 0.1 | 0.1 | 0.1 |
Operating Income | 4.8 | 1.5 | 7.2 |
Operating Margin | 6.9% | 2.8% | 7.5% |
Adjusted Operating Income* | 5.1 | 2.1 | 7.2 |
Adjusted Operating Margin* | 7.4% | 3.9% | 7.5% |
Q3 2020 NOTES
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Q3 2020
BALANCE SHEET
$ MILLIONS
September 30, 2020 | June 30, 2020 | ||||||
Q3 2020 NOTES | |||||||
Cash | 53.6 | 63.4 | |||||
Accounts Receivable | 128.6 | 102.8 | |||||
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Inventories | 83.3 | 70.7 | |||||
Other Assets | 161.6 | 164.1 | |||||
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Total Assets | 427.1 | 401.0 | |||||
Accounts Payable | 89.4 | 54.6 | |||||
Debt (Current + Long Term) | 150.4 | 154.2 | |||||
Line of Credit | - | 15.0 | |||||
Other Liabilities | 92.0 | 89.4 | |||||
Total Liabilities | 331.8 | 313.1 | |||||
Total Equity | 95.3 | 87.9 | |||||
Total Liabilities + Equity | 427.1 | 401.0 | |||||
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Debt
CVG CURRENT DEBT STRUCTURE
ABL
TLB
MAY 2020
AMENDMENT
- $90M facility ("Tranche A") - LIBOR + 150 bps if availability stays above $30M
- $7M FILO ("Tranche B") - Interest rate is 100bps greater than Tranche A
- Paid down to zero balance in 3Q 2020
- Matures April 12, 2022
- $151M outstanding as of 10/31/2020 - Interest rate LIBOR + 600bps subject to a floor of 1.00%
- Paid additional $5M in Q3 2020
- Matures on 4/12/2023
- Amendment provided a "covenant relief period" through 9/30/2021
- Increased TLB interest by 450bps - PIK interest
- Suspended 4.75x TLB leverage ratio
- Provided gradual phase-in from 12.00x at 3/31/2021 to 4.75x on 12/31/2021
- Optional redemption added - 102 hard call through 6/30/2021 and 101 hard call through 6/30/2022
- Steps down to LIBOR + 600bps and no PIK interest on 10/1/2021
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SUPPLEMENTAL
INFORMATION
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Q3 2020
USE OF NON-GAAP
FINANCIAL MEASURES
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Q3 2020
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - ADJUSTED OPERATING INCOME AND EBITDA
For the Three Months Ended | ||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | ||
Operating Income/(Loss) | 8.9 | (10.5) | 11.5 | |
FSE Acquisition Costs | - | - | 0.9 | |
Deferred Consideration Purchase Accounting | 0.5 | 3.5 | - | |
Restructuring | 2.2 | 2.9 | - | |
Investigation | 0.5 | 0.4 | - | |
Impairment of Goodwill and Long-Lived Assets | - | 0.2 | - | |
Adjusted Operating Income/(Loss) | 12.0 | (3.6) | 12.4 | |
% of Revenues | 6.4% | (2.8%) | 5.5% | |
Interest Expense | 5.5 | 5.3 | 3.9 | |
Other (Income) / Expense | 0.2 | (0.2) | (0.1) | |
Adjusted Income/(Loss) Before Provision for Income Taxes | 6.4 | (8.7) | 8.6 | |
Adjusted Provision/(Benefit) for Income Taxes | (0.2) | (1.4) | 0.7 | |
Adjusted Net Income/(Loss) | 6.5 | (7.3) | 7.9 | |
Adjusted Basic and Diluted EPS | 0.21 | (0.24) | 0.26 | |
Adjusted Net Income/(Loss) | 6.5 | (7.3) | 7.9 | |
Interest Expense | 5.5 | 5.3 | 3.9 | |
Adjusted (Benefit) Provision for Income Taxes | (0.2) | (1.4) | 0.7 | |
Depreciation Expense | 3.8 | 3.7 | 3.4 | |
Amortization Expense | 0.9 | 0.9 | 0.4 | |
Adjusted EBITDA | 16.4 | 1.2 | 16.3 | |
% of Revenues | 8.8% | 1.0% | 7.3% | |
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Q3 2020
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - ADJUSTED EBITDA
For the three months ended | |||||||
March 31, | June 30, | September | December | March 31, | June 30, | September | |
2019 | 2019 | 30, 2019 | 31, 2019 | 2020 | 2020 | 30, 2020 | |
Net Income | 10.0 | 6.1 | 7.2 | (7.5) | (24.6) | (12.5) | 4.2 |
Interest | 4.6 | 4.8 | 3.9 | 3.6 | 4.6 | 5.3 | 5.5 |
Provision for Income Taxes | 3.2 | 2.2 | 0.5 | (0.1) | (7.3) | (3.1) | (1.0) |
Depreciation | 3.4 | 3.0 | 3.4 | 3.8 | 3.8 | 3.7 | 3.8 |
Amortization | 0.3 | 0.3 | 0.4 | 0.9 | 0.9 | 0.9 | 0.9 |
Impairment | - | - | - | - | 28.9 | 0.2 | - |
EBITDA | 21.4 | 16.5 | 15.4 | 0.6 | 6.2 | (5.6) | 13.3 |
Adjustments | |||||||
CEO Transition | - | - | - | - | 2.3 | - | - |
Restructuring | - | - | - | 3.0 | 0.2 | 2.9 | 2.2 |
Investigation | - | - | - | - | 2.4 | 0.4 | 0.5 |
FSE Acquisition Costs | - | - | 0.9 | - | - | - | - |
Deferred Consideration | |||||||
Purchase Accounting | - | - | - | - | - | 3.5 | 0.5 |
Non-Cash Pension Charge | - | 2.5 | - | - | - | - | - |
Adjusted EBITDA | 21.4 | 19.0 | 16.3 | 3.6 | 11.0 | 1.2 | 16.4 |
Trailing twelve months
September | September |
30, 2020 | 30, 2019 |
(40.4) | 31.4 |
19.0 | 18.4 |
(11.5) | 6.3 |
15.0 | 13.1 |
3.4 | 1.4 |
29.0 | - |
14.570.5
2.3-
8.2-
3.3-
-0.9
4.0
-
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32.371.4
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Q3 2020
BUSINESS SEGMENT FINANCIAL
INFORMATION
For the three months ended September 30, 2020 | |||||||||
Electrical | Global | Corporate | Total | ||||||
Systems | Seating | ||||||||
Operating (Loss) Income | 12.2 | 4.8 | (8.1) | 8.9 | |||||
Restructuring | 0.7 | 0.3 | 1.1 | 2.2 | |||||
Deferred Consideration | |||||||||
Purchase Accounting | 0.5 | - | - | 0.5 | |||||
Investigation | - | - | 0.5 | 0.5 | |||||
Adjusted Operating Income | 13.4 | 5.1 | (6.5) | 12.0 |
Adjusted Operating Margin | 11.1% | 7.4% | 6.4% |
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Q3 2020
FREE CASH FLOW
For 4 the quarters ended
December | March 31, | June 30, | September | |||
31, 2019 | 2020 | 2020 | 30, 2020 | |||
Cash Flow from Operations | 8.2 | 10.3 | 10.1 | 10.4 |
Capital Expenditures | (5.2) | (3.4) | (1.0) | (1.5) | |||
Free Cash Flow | 3.0 | 6.9 | 9.1 | 8.9 |
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Disclaimer
CVG - Commercial Vehicle Group Inc. published this content on 14 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 January 2021 17:29:01 UTC